TSLA Stock Price Near Levels When Elon Musk Called Tesla 'Far Too High' Based On Reality In 2013
On August 22, 2013 CNBC's Phil LeBeau interviewed Elon Musk inside a Tesla Motors Inc (NASDAQ: TSLA) plant regarding the company's then-current share price. On that day, the issue added nearly $10 to end the session at $157.10.
If one had heeded the advice of Musk, they would have missed out on a rip-roaring rally. By February 2014, the issue had an all-time high at $265 and after a dip under $200, it made its eventual all-time high in September 2014 at $291.42.
During his interview, Musk used very cautious terms when discussing the share price of one of the momentum issues of that time period. Musk stated the "value of Tesla is very generous," adding that the market is hinging on future execution.
Tesla -- near $150 at the time -- was in Musk's view "far too high based on historical financials, or even current financials."
Tesla Back At 2013 Levels
Now with Tesla back at the same level when Musk was interviewed in 2013, what may determine whether the depression will continue or an exuberance phase is revived? Look no further than Tesla's quarterly earnings after the close on Wednesday.
After a series of EPS and revenue beats from Q1 2013 through Q3 2014, the last four quarters have been a mixed bag with a huge EPS miss for Q4 2014, a solid beat in Q1 and Q2 2015, and a substantial Q3 miss.
What may be more important that any backward looking numbers is forward guidance. Lower or inline guidance may force investors to mirror what happened to LinkedIn last week, when shares lost 50 percent in a day.
Of note, anyone listening to Musk would have missed an enormous $140 increase in share price, but if they hadn't exited, they'd be underwater presently.
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